The 4 Supports of Successful Debt Consulting in Victoria, BC

Being aware of the 4 supports of successful debt consulting will help you find an expert in Victoria, BC when you need one. Many financial consultants claim to be experts in credit counselling, debt relief, debt consolidation, and alternatives to bankruptcy. However, when it comes to your money, there are tell-tale signs if someone has your best interests at heart or not. The 4 key factors are finding someone who will objectively explore all your options with you, does not base their recommendations on how they earn commission, finds solutions based on your goals, and is transparent – doesn’t hide or minimize the negative aspects of any debt relief solution they may recommend.

Carefully Explore All of Your Options – Not Just the Option They Want to Talk About

The first of the 4 supports of successful debt consulting is to find a credit counsellor or advisor in Victoria who will objectively and thoroughly help you consider all options to resolve your financial challenges and get your finances back on the right track. In BC, there are many ways to begin to address financial problems: create a spending plan, reduce your spending, find ways to decrease your expenses, find creative ways to increase your income, sell valuable assets, downsize your home, get rid of one car, and the list goes on. Once you’ve created a plan to tighten you belt – financially speaking – and you still don’t have enough money to pay your debts and provide your family with a reasonable standard of living, then finding successful debt relief solutions becomes a viable and necessary option. These solutions can include: debt consolidation, debt settlement, a Debt Management Program, Orderly Payment of Debts, a Consumer Proposal, or Bankruptcy.

When it comes to these debt relief options, one size doesn’t fit all. Debt relief is kind of like medicine. Different medicine is required for different problems. The same medicine should never be given to everyone as a wonder drug that cures everything. If the person offering you advice only seems to focus on one solution, there’s a chance that they are only being paid only if you chose that one “solution.”

Make Sure Your Debt Consultant or Credit Counsellor Is Not Paid Commission

We believe it is very difficult for a debt consultant to provide objective information and guidance if their pay cheque depends on the solution you choose. A sales person will naturally present the option that pays them the most and find creative ways to make it seem like the most attractive option for you too. In the debt relief industry, organizations that link their credit counsellor or debt consultant income to one or two specific solutions end up seeing over 80% of the people who sit down with one of their consultants sign up for one of these “solutions.” However, when credit counsellors are paid a straight salary with no financial incentive to promote any specific solution, less than 20% of the people who sit down with them end up choosing to go with the solution that generates income for the organization.

Because commission has such a powerful effect on the outcome of credit counselling and debt consulting, a large number of Canada’s non-profit credit counselling organizations have gotten together to form an association that bans its members from paying their employees commission. This organization is called Credit Counselling Canada.

The Solution Needs to Match Your Goals, Not Theirs – Insolvency has Long-Term Consequences

The debt relief option and solution you choose should set you up to successfully achieve your financial goals, not the advisor’s. Each form of debt relief is only appropriate for certain types of circumstances. Each has its own unique set of pros and cons. Some forms of debt relief – such as insolvency (Consumer Proposals and Bankruptcy) have a serious negative impact on your credit rating a minimum of 6 years.

 There is the possibility that having an insolvency record like this could affect future employment opportunities in finance, banking, security, law enforcement, and public service.

 Transparency & Accountability – Last of the 4 Supports of Debt Consulting

The last of the 4 supports of debt consulting is in Victoria is transparency. How transparent and accountable is the person you are dealing with? Are they or their company accountable to a national association of their peers which insists on high standards and requires that all its credit counsellors and consultants be professionally trained and certified by a recognized body? Do they fully disclose all costs associated with their service and discuss less expensive alternatives?  In Canada, the national association that upholds these standards is Credit Counseling Canada. Make sure that you work with one of their members.

What Quality Debt Counselling Looks Like in Victoria, BC

By knowing what the 4 supports of successful debt consulting and counselling in Victoria look like, you can ensure that you deal with the right person to help you with your money troubles. Knowledge is powerful; a decision that will affect your long term financial future should never be entered into without knowing all the facts. Find a consultant, agent, or representative who carefully explores all of your options with you. Be sure they aren’t pushing the one form of debt relief that earns the most for their bottom line. Make sure the solution they recommend aligns with your long-term goals and doesn’t limit your future opportunities, and ensure the company you’re dealing with is transparent in their dealings and accountable to a national body of their colleagues. By following these guidelines you should be able to find a credit counsellor in Victoria who has your best interests at heart and who will help you get your finances back on track as quickly as possible.